Most video coding algorithms, including H.264\AVC video coding standard, use temporal redundancy of images in consequent frames to reduce size of coded bit-stream. In these algorithms, where the Reference frame is a previously coded frame and Target frame is a frame being currently coded, only the residual (i.e. difference) between reference and target frame is typically coded. Often, a video scene contains moving objects, and in order to minimize the residual between target and reference images, a motion estimation (ME) process may be used in order to find better match between target and reference images.